AGRICULTURAL INSURANCE IN TANZANIA PIVATE & PRIVATE SECTOR ROLES AND RESPONSIBILITIES DAR ES SALAAM 9TH JULY 2018   By Dr Mukama Charles Agricultural Risk Management Focal Point mukamacharles@yahoo.com Ministry of Agriculture, Animal Industry and Fisheries Uganda

MOTIVATION SITUATION ANALYSIS CONSTRAINTS Africa population: 1.2bn Labour force: 65% of the population Small holder farmers: 33m (Uganda 5.3m) Agric. growth less than Population growth Africa - Net importer Multitude of Agricultural Risks Subsistence system Poor technology Liberalized economy – increases vulnerability of small holder farmers

AGRICULTURE DEVELOPMENT NATIONAL AGRICULTURE INVESTMENT MOTIVATION PUBLIC FRAMEWORKS DELIVERABLES COMPREHENSIVE AFRICA AGRICULTURE DEVELOPMENT PROGRAM Target - Farmers Allocation of 10% of National budgets to Agriculture: $ 0.33trillion Private-Sector investment commitment to agriculture of over $10 billion. Agriculture for economic development, Growth - 6% NATIONAL AGRICULTURE INVESTMENT PLANS GROW AFRICA (NEPAD + WEF)

Weather Index Insurance in Uganda (Component of COMRAP 2010-15) DELIVERABLES COMESA, UNDP, Centenary Bank and Lion Assurance Reduce credit risk on farmers’ loans Availability of financial services to famers Promote Commercial Farming Increase production Food security and Livelihoods Securing buy-in Sensitizing of actors Bankers Insurance comps. Policy makers Meteorology Designing of products Carried out studies Caries out pilots

Agricultural Insurance Scheme in Uganda AGRICULTURAL SECTOR STRATEGIC PLAN TOOLS ASSESSMENT (AGRIC INSURANCE) 2015/16 -2020/21 ARM DELIVERABLES Access to Technoloy Reduce Agric. Risks Promote Commercial Agric. Production & Exports Food Sec. and Livelihoods Source PARM Study: Annual Economic impact in Uganda Est: USD 606m to USD 804m per annum ( 2.3% - 3.1% of Agric. GDP).

Agricultural Insurance Scheme in Uganda 2016 Formation And Implementation (Public & Private Coop.)) Ministry of Finance; To provide subsidy funds and M&E Ministry for Agriculture: Technical Data on Production, yields, various losses & crop and animal husbandry Provide required extension service and awareness & education. Meteorological Authority : To provide meteorological data for farmers and insurance companies Uganda Insurers Association: Organize a consortium of insurance operators. Designing, marketing, selling of insurance products and claims payment procedures Awareness and training activities on Insurance and the Scheme. Uganda Bankers Association: Provide banking services to insurance companies and farmers Bank of Uganda: Maintain the Escrow Account for the subsidy and payment of subsidy claims . Insurance Regulatory Authority: Assessment and approval of the product. Verification and approval of the insurance claims from the insurance companies Farmer Associations: Mobilize and participate in sensitization & education campaign for farmers and farmer groups Development Partners: Funds

Agricultural Insurance Scheme in Uganda - Implementation Lessons Challenges Technical capacity for development of appropriate product suitable for both Govt. and Regulatory Authority. Availability and reliability of the technical data. Capacity to popularize the concept of insurance to the farmers and other actors. Distribution channels. Should be part of and parcel of the agricultural devpt. Programs – subsidy and input provision Govt. should invest in AI indefinitely as part of service delivery program. Requires involvement of the public and private sector Stakeholder mapping of the roles with convergent goals, Govt – Socioeconomic and Private with Business/economic.

Milestones in Uganda Agricultural Risk Management has been integrated into the Agriculture Sector Strategic Plan (ASSP), ARM capacity building at the operational level as well as training of trainers of the extension service providers in MAAIF has been done - 300. ARM has been included in Makerere University Agriculture curriculum. There is an Early Warning Unit in the Ministry of Agriculture – gives useful information on seasons, food production and impending weather disasters Scaled up the Extension service human resource structure, Development of agricultural data center, Plan for development of an Agricultural Insurance strategy is place with key issues: To include AI as one of the best practices in crop and animal husbandry To scale investment in areas that will reduce AI implementation costs such as availability of affordable or free information/data, farmer awareness, training and education, payment systems Use of the vast extension service structure as part of the implementation channels Include AI in the Insurance course curriculum integration of AI activities with those of MFI, rural savings and credit co-operatives and/or other suppliers of credit for agricultural inputs (fertilizers, seeds and planting materials) - ASSP

AI, an efficient tool for service delivery. Conclusions??? AI, an efficient tool for service delivery.

UGANDA AT A GLANCE ====thank you=====